NEW DELHI: Airfares may rise further as oil companies have raised jet fuel prices by 2.5 per cent from May 1 following a recent rise in crude oil prices. This is the third consecutive month there has been an increase in domestic ATF rates on the back of firming global prices and a weak Indian rupee.
A kilolitre (1,000 litres) of aviation turbine fuel (ATF) in Delhi and Mumbai will cost Rs 65,067.85 and Rs 65,029.29 in May, up from Rs 63,472.22 and Rs 3,447.54 last month, respectively. Airfares have gone up significantly since Jet Airways started grounding its planes due to a severe financial crunch.
With the grounding of the airline, Indian skies have seen a drop in the number of flights, which has allowed other carriers to sell air tickets at higher prices to maximize profits. Airlines have ordered new planes on lease to fill the gap, but officials said this would take time to happen. “The 2.5 per cent increase in ATF prices is expected to affect air travel, especially ahead of the peak travel season,”said Sharat Dhall, COO (B2C), Yatra.com.